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Customs &
Trade News

May 25, 2018

U.S. to investigate if automotive imports threaten national security

U.S. President Donald Trump asked his Secretary of Commerce Wilbur Ross to initiate an investigation to determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232 of the Trade Expansion Act of 1962.

Secretary Ross said: "There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry. The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security."

According to the Department, U.S. imports of passenger vehicles have grown from 32 percent of cars sold in the United States to 48 percent in the past 20 years. American owned vehicle manufacturers in the United States account for only 20 percent of global research and development in the automobile sector, and American auto part manufacturers account for only 7 percent in that industry.

The American Administration will now investigate these and other issues to determine whether imports of automobiles and automotive parts threaten to impair the national security.

A similar investigation into imports of steel and aluminum resulted in the assessment of special duties of respectively 25 and 10 percent on U.S. imports of the two items, applied (or not) depending on the country of origin.


Transport &
Trade News